In New Orleans, a five to eight unit building is usually a big old house: an Uptown mansion, a Mid-City raised center hall or an Esplanade Avenue Victorian split into apartments. The charm is real, and so is the insurance bill.
In short: LendingStreet finances 5 to 8 unit rental buildings across Orleans and Jefferson parishes with DSCR loans that qualify on rent, not tax returns. Loans start at $150,000 with no stated maximum and a 1.0x standard minimum DSCR. In New Orleans, insurance is often the largest expense after the loan payment, historic review can slow renovations and non-owner-occupied short-term rentals are heavily restricted in residential areas.
Uptown, the Garden District edges, the Irish Channel and Central City have large homes divided into five or more apartments, plus a few small purpose-built walk-ups. Mid-City and the Esplanade Ridge have raised homes and Victorians converted to multiple units. The Marigny, Bywater and Treme have mostly doubles and smaller buildings.
Gentilly and Algiers offer lower prices. In Jefferson Parish, Metairie and Kenner have 1960s and 1970s brick garden buildings that rent to working tenants.
Many divided homes in Uptown and Mid-City have a mix of unit sizes, from a large first-floor apartment to small units carved out of upper floors and rear wings. Appraisers look at each unit's size and finish, so a building with several very small units may support less rent than the count suggests.
| Area | Typical stock | Key check |
|---|---|---|
| Uptown and Irish Channel | Divided mansions, walk-ups | HDLC or local historic review |
| Mid-City and Esplanade Ridge | Converted raised homes, Victorians | Flood elevation, unit count |
| Central City | Large divided homes | Condition, renovation needs |
| Metairie and Kenner | 1960s-1970s garden buildings | Jefferson Parish rules |
Much of New Orleans falls under the Historic District Landmarks Commission, and the French Quarter is regulated by the Vieux Carre Commission. Exterior work, including windows, roofs and siding, often requires approval. Plan for longer timelines and higher material costs.
Older wood-frame buildings have termite exposure, foundation settlement and aging electrical. Order a thorough inspection, including a termite inspection, and confirm the legal unit count with the city.
This example is illustrative and not a quote. An investor buys a Mid-City raised home converted to six legal apartments for $960,000. Insurance includes both wind and flood coverage. Gross rent is $8,700 a month, an average of $1,450 for each of the 6 units, and the monthly budget includes $800 in taxes and $1,250 in insurance.
A $720,000 loan (75% LTV) carries estimated principal and interest of about $5,034, a full payment near $7,084 and a ratio of about 1.23x. Dropping to 70% LTV, or $672,000, brings the payment to about $6,749 and the ratio to about 1.29x; the investor needs $48,000 more cash.
Insurance costs more than taxes here, and a better flood elevation or newer roof can change the loan amount. Budget for higher renovation costs in historic districts.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Purchase price | $960,000 | $960,000 |
| Loan amount | $720,000 | $672,000 |
| Down payment | $240,000 | $288,000 |
| Estimated principal and interest | $5,034 | $4,699 |
| Property taxes (monthly) | $800 | $800 |
| Insurance (monthly) | $1,250 | $1,250 |
| Total monthly payment | $7,084 | $6,749 |
| Gross monthly rent | $8,700 | $8,700 |
| DSCR | About 1.23x | About 1.29x |
Since Hurricane Ida in 2021 and the failure of several Louisiana insurers, premiums in New Orleans have risen sharply. Louisiana Citizens covers many properties private carriers will not. Most of the city is in a mapped flood zone even behind the levees, so flood insurance is common and often required.
Raised homes and buildings with elevation certificates can price better for flood coverage. Ask for wind mitigation features and roof age.
New Orleans bans whole-unit, non-owner-occupied short-term rentals in most residential zones and has tightened permitting over the years, including a limit of one permit per block face in some areas. A building in a residential zone will be underwritten on long-term rents.
Louisiana markets outside the city have different rules; see our Louisiana STR page for options.
Louisiana assesses residential property at 10% of fair market value, and Orleans Parish reassesses every four years. The homestead exemption does not apply to a rental.
Closings are executed before a notary under Louisiana civil law. Ask the closing agent for a full cost estimate.
Orleans Parish tax bills combine city, school, levee and other millages. Jefferson Parish has its own assessor and rates, and Metairie and Kenner buildings can carry noticeably different bills from comparable buildings in the city.
Our DSCR loans treat a Louisiana building of five to eight units as residential, 1 to 8 units, rather than commercial. That means qualification on the property's rent instead of your personal income, with no tax returns or W-2s, and title held in an LLC as a matter of course.
Minimum loan size is $150,000 and there is no stated cap. Program maximums are 80% LTV on a purchase and 75% LTV on a cash-out, with rate-and-term up to 80% on some programs; expect less on many 5-8 unit files, since leverage varies by program and balance. The usual floor is a 1.0x ratio and a 620 score, with sub-1.0 options for thin-margin buildings. Cash-out seasoning also varies by program.
Our investor loans are business-purpose loans on non-owner-occupied property. A complete package gets a faster answer, so gather the items below and send them through the form below, or call (877) 298-1001. The Louisiana 5-8 unit DSCR page covers statewide issues; buildings of nine or more units belong on our commercial and multifamily pages.
Not in most residential zones if you do not live there. The city bans whole-unit, non-owner-occupied STRs in most residential areas.
Hurricane exposure, flood risk and the collapse of several insurers after recent storms.
Much of the city is in a historic district. Check before planning exterior work.
Most of the city is in a mapped flood zone, so it is often required on financed buildings.
Yes. The program covers Jefferson Parish, which has its own rules and tax rates.
Loans start at $150,000 with no stated maximum. Purchase leverage goes up to 80% LTV and cash-out up to 75%, but maximum LTV on 5-8 units is often lower and varies by program.
The appraiser's market rent can support vacant units on some programs, but a building with weak occupancy usually gets more scrutiny. A bridge loan can carry a lease-up before a DSCR refinance.
No. The loan qualifies on the building's rent, not your personal income, so W-2s and tax returns are not required. A 620 minimum credit score applies.
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